General contractors charge 10% to 20% of the total construction cost, known as "cost-plus." Some building contractors charge a flat fee based on the project but rarely charge an hourly rate. Home improvement contractors pay on your behalf for all materials, subcontractors, services, and permits.

Licensed general contractors manage and coordinate the entire building process. A general contractor estimates the job, provides the materials and tools, and hires specialized subcontractors for the construction work. Remodeling contractors can perform electrical work, plumbing, HVAC, roofing, or build a house

A general contractor saves you time, resolves any problems, and ensures the construction follows code requirements. General contractors have a network of experienced, licensed, and insured subcontractors to properly build any project. Home contractors also source all the materials, tools, and permits and pay for them on your behalf.

Common projects to hire a licensed general contractor are home, bathroom, kitchen, and basement remodeling.

Start by searching our list of construction companies near you. After finding contractors in your area:

• Get at least three estimates from building contractors to compare.
• Ask for references and to see a portfolio of their past work.
• Verify their insurance, worker’s compensation, and bond guarantees.
• Call references, read their reviews, and check out their previous work on HomeGuide and Google.
• Ask about their warranties and guarantees.
• Ask for a full itemized contract in writing in case of a dispute.
• Avoid making large payments upfront. Come up with a payment schedule for work completed.

Ask these questions upfront before hiring:

• How long have you been a general contractor?
• How many similar projects have you built?
• Can you provide me with a list of references?
• Can I see your portfolio?
• Are you licensed, insured, and bonded?
• Have there been any lawsuits against your company?
• How do you handle damages that happen on the job?
• Who's the project manager?
• What qualities do you look for in subcontractors?
• What hours do you and your crew work?
• How long will the project take?
• What permits do I need, and will you obtain them?
• What does your warranty policy include?
• Can you provide me a written estimate or contract with a breakdown of all costs?
• What is the structure of the payment agreements?
• Do you offer in-house financing?
• What do I need to provide to get started?

A general contractor assumes responsibility for the project and should be licensed and insured. Ask for a potential contractor's license number and proof of insurance before hiring. Ask your local building department for licensing requirements, then verify the licensing on the state's licensing board website.